Aug 7, 2013
Infotrends recently published its annual Western European Network Document Solutions Forecast: 2012-2017 for the Office solutions market, showing continued strong growth at a CAGR of 12.8%. The market value is expected to reach â‚¬2.2 billion by 2017 despite a weakened European economy. Growth rates have slowed slightly over previous forecasts but solutions still represents an attractive opportunity for potential investors as we have seen through recent M&A activity. After the US, Western Europe presents the second largest market for office solutions and much ISV development stems from the European region.
The annual forecast provides analysis by category, channel, and company size for the four solutions areas Device Management, Output Management, Capture/Workflow and Document Management. The data provides a Western European overview plus a break-out for Germany, UK, France, Italy, Spain and the Netherlands. Whilst Germany remains the largest country for solutions in Europe, France and the Netherlands are expected to show the highest growth rates across the forecast period.
Each solutions area is further broken out into sub-segments so that industry players can get to levels such as rules-based printing or server-based DMs solutions and see potential revenue streams and expect growth rates.
Western European Solutions Forecast (in thousands of Euros)
Output Management generates the highest amount of revenue in Western Europe with security solutions playing a major role but Capture/Workflow is expected to have the highest growth rates (CAGR 14.9%) to 2017 driven in particular by workflow solutions in vertical markets.
The direct channel has been the most successful to date in Western Europe as this is where vendors have the greatest level of control but recently announced indirect channels programs such as those from HP are likely to give those channels more chance to differentiate themselves in future. Facilities management (FM) is a smaller channel in the office compared to the production space but Xerox and Canon (former Oce Business Services), continue to dominate this space.
The forecast also tracks the progress of SaaS in competition with traditional licensing models sliced by small, medium & large-sized organisations and identifies which of the sub-segments of solutions are expected to grow the fastest. Current activity around mobile printing solutions for example is high as well as cloud-based services for Document Management are expected to provide new revenue boosts soon.Â
We should also not forget that solutions provide the backbone technology to supply Managed Print Services. As the market for MPS shifts from a supplies/Break-fix offering to one that optimizes hardware fleets or even advanced engagements, the higher value solutions that integrate and optimize output with data are more in demand and to compete there is where the traditional device vendor needs to become a true IT services provider.
The office equipment market is in transition. To serve customer needs, vendors need to position themselves as IT service providers and solutions provide the tools to achieve that whilst presenting an attractive revenue opportunity. For more information about InfoTrends’ 2012-2017 Western European Network Document Solutions Forecast, please contact Jason Russell at Jason_russell@infotrends.com